Hongqiao Emerges as China's Global Business Launchpad

Shanghai's Hongqiao area is solidifying its role as a pivotal hub for Chinese enterprises expanding overseas, as the country enters a new era of outbound investment.

During the ongoing 8th China International Import Expo (CIIE), the Hongqiao International Opening-up Hub announced to position itself at the center of this transformation.

At the Hongqiao International Economic Forum, outlined what they term the "Going Global 3.0" phase – one where Chinese firms have moved beyond mere product exports to build comprehensive overseas operations encompassing manufacturing, marketing, management, and branding.

Former International Monetary Fund deputy managing director Zhu Min said Chinese companies are developing what he called a "China + N" model, meaning they are building global networks instead of relying on single export routes.

"This marks a new historic turning point," Zhu said. "Chinese companies are evolving into true multinational corporations."

By the end of 2024, Chinese investors had set up more than 50,000 overseas enterprises across 190 countries and regions, with about 70 percent reporting profits or breaking even, according to the Ministry of Commerce.

In 2024, China's outbound direct investment reached US$192.2 billion, an increase of 8.4 percent from a year earlier. For the first time, the country's overseas investment exceeded the foreign capital it received.

Hongqiao has become a key support base for this process. It now provides legal, financial, logistics, and consulting services to companies going abroad.

"If outbound companies are sailing toward the world, Hongqiao is the best dock," Zhu said.

The Hongqiao Overseas Development Service Center has built a network of more than 500 professional service providers and established partnerships with over 4,600 companies.

The center offers advice on compliance, risk management, and market entry. A newly upgraded 3.0 version of its platform now also supports business planning, innovation, and talent training.

Jack Perry, chairman of the 48 Group Club in the United Kingdom, called the period "Icebreaking 3.0."

His grandfather led the first British trade mission to China in 1953. Perry said the goal today is not to bring trade into China, but to help Chinese innovation reach global markets.

"We must build trust and cooperation, not competition," he said.

Perry added that Hongqiao's strength lies in its role as a "connector."

"It is not only a trade hub but also a learning platform," he said. "It helps companies understand global rules, build trusted brands, and enter foreign markets the right way."

Several Shanghai-based firms have already leveraged Hongqiao's resources for international growth.

Industrial software firm Black Lake Technology has brought its digital factory systems to serve more than 30,000 factories worldwide. Co-founder Li Xiang said Hongqiao's location gives the company quick access to both clients and partners.

"Hongqiao's location puts us close to the city center – and even closer to the world," he said.

In the food industry, noodle chain Chenxianggui has expanded from Shanghai to Germany with Hongqiao's support on logistics and regulatory compliance.

To assist more firms, Hongqiao released two key documents – "Guidelines for Chinese Enterprises Going Global" and "Hongqiao Cases of Going Global" during the forum.

The guidelines map the shift from export-focused models to global operations, while the casebook shares successful overseas expansion stories.

KPMG partner Li Yao said the third stage of globalization focuses on local value creation.

"Companies are building full local supply chains – from research and manufacturing to sales – instead of relying only on exports," she said. "This is about long-term presence and resilience."

China's State Council, or the nation's Cabinet, has called on cities to improve overseas service systems for outbound firms by integrating financial, legal, and logistics services, and by setting up service stations in key countries.

Hongqiao is among the first pilot areas to implement this policy. Ithas launched an International Talent Service Center to simplify travel and visa procedures and an International Legal Service Zone to help companies resolve cross-border disputes.

Notably, more than one-third of companies using the services come from outside Shanghai, mainly from the Yangtze River Delta region.

Zhu Min said Hongqiao is creating a unique model. "Many countries build hubs to attract foreign capital," he said.

"Hongqiao builds a hub to support outward investment. It is a new understanding of globalization."